UK consumer confidence has fallen back five points in September, largely attributed to both shop supply shortages and rising prices, according to new research by GfK.
GfK’s Consumer Confidence Index decreased by five points to 13 in September, with all measures down in comparison to August’s announcement.
The data showed that the most drastic decline in confidence was in the “general economic situation over the next 12 months”, which fell by ten points, and in households’ confidence in their personal financial situation over the next year, which slipped six points.
Joe Staton, client strategy director GfK, said: “On the back of concerns about rising prices for fuel and food, the growth in headline inflation, tax hikes, empty shelves and the end of the furlough scheme, September sees consumers slamming on the brakes as those already in economic hardship anticipate a potential cost of living crisis.
“All measures have declined this month and consumers are clearly worrying about their personal financial situation and the wider economic prospects for the year ahead. The Index also records a fall in the major purchase index: depressing news for hard-pressed retailers looking to build sales as they go into the key holiday period.”
He added: “When consumer confidence drops, shoppers tend to spend less, and this dampens the overall economic prospects for the UK. This really is an unwelcome picture if this continues into 2022 and beyond.”